Best Brokers in Kenya
Kenya is an old civilization. It has well established legal, financial and other systems in place. It has a financial services sector that also is quite old. It is around 70 years old and was started in the year 1950. It catered well to the entire East African market. Kenya is also a young country because more than 52 million people are under the age of 35. Therefore, there is quite a bit of expectations and hope as far as the future of this country is concerned.
An increasing number of Kenyans who belong to the middle class invest in FX trading at present. Consequently, the regional money market clean up from dodgy businesses was unavoidable.
If a fresh regional FX company is opened up by anybody, it will be imperative for them to get certification from the office of the CMA. It is important for any business to have at least Sh50 million capital so as to procure a license from the CMA. You will not come across any Forex brokerage perhaps because of this, or because the market in Kenya is rather small. However, this is not the same when we compare it to any other nation in Africa such as Nigeria or South Africa where individuals have a wider scope.
The CMA, in the year 2017, has cracked down on many illegitimate FX Kenyan companies which is definitely a positive indication. You are strongly suggested to make a trade with FX brokers who are regulated out there.
The most faithful regulatory agencies happen to be Cyprus CySEC, British FCA, plus Australian ASIC. FX companies are compelled by these government authorities to enforce stringent security standards like isolated accounts, and several of them are even compelled to provide Negative Balance Protection for safeguarding even those customers that reside outside the E.U.! Having said that, there is a greater chance for your cash to be secured in case an FX trading account is opened by you with FX brokerage controlled by one of these agencies.
Stock Market In Kenya
The stock market in Kenya is also quite old and it was found in 1954. It is known as Nairobi Securities Exchange or NSE. The stock market grew in bits and starts and it was not until 2014 that the NSE was demutualized and it became a self-listed entity. The NSE offers almost everything that is expected of any good stock exchange around the world. You can enjoy basic listing services both in stocks and also derivatives of stocks. It also is the place where you can find listing of ETFs (Exchanged Traded Funds) or REITs, which is the expansion of Real Estate Investment Trusts. It also is the platform where marketing of corporate debt securities of both government and corporate entities are permitted.
How To Trade Forex In Kenya
Identifying the best brokers in Kenya is not an easy job. This is because the forex broking market is still in its primary stages. There are only a few reputed online brokers who deal in forex buying and selling. Only a handful of them have offices in Kenya. However, those who live in Kenya are allowed to deposit money for the purpose of online trading. They have to use account of foreign brokers who are ready to accept customers as their clients. Almost all brokers have a website of their own. The customer servicing is done in English. Not many foreign brokers offer their services in the local languages such as Bantu Swahili.
Monitoring & Regulation of Foreign Brokers
We also need to bear in mind that brokers who are situated outside Kenya have to go through strict monitoring and regulation as per the local law of the land. The client funds have to be kept separately from the accounts of the trading brokers. Brokers are also supposed to enjoy very good reputation as far as their clients are concerned. Further, they also should be equipped and ready with a bouquet of products and services to cater to the specific needs and requirements of the clients.
Most of the reputed forex brokers offer high quality services and they allow their clients to develop strategies and also get into some practice. They offer demo account and the accounts are also funded with virtual money. In addition to it, al brokers also offer accounts that are funded. There is a minimum deposit stipulation which should be funded into the account before live trading begins.
How to select an FX Brokerage being a trader from Kenya
Firstly, it is imperative for you to evaluate your present trading style and knowledge. If you happen to be a novice and don’t have any idea regarding currency trading, you are suggested to avoid Metatrader4 and simply start afresh with some trader on the web which you need not download.
It is imperative for the best Forex brokers in Kenya 2019 to make a decision whether they select a Forex Company controlled by the CMA or opt for several of the most faithful currency brokerage on the planet. If you opt for CMA certified, it will be essential for you to make deposits via the ledger of the broker only which will enable the government in Kenya to monitor the flow of the capital to and fro from the nation, and the KRA would be capable of taxing the trader as per their income generated from the currency trading.
Trading Commissions and Fees
It does not matter whether you happen to be only a beginner or an intermediate merchant it is vital for you to inspect the structure of the fees carefully since that is going to either break you or make you. It will be better if the fees happen to be lower.
Fees related to Trading:
Spreads – The discrimination between BUY and SELL cost in pips anything in excess of three Pips for the most fluid USD/EUR is typically too much and you ought to avoid whatsoever. It is feasible for the spreads to be fixed or variable, and it typically depends on the type of account.
Swaps – the charge paid by you so as to keep the agreement open overnight.
Commissions every LOT – this won’t be visible to you much, typically only with the upper class.
Withdrawal Fees, Deposit fees, and fees for Inactivity.
Types of Account
You have the option of selecting between Mini, Micro, and Standard accounts which will, of course, depend on your personal trading style and budget. You are encouraged to commence small with either Mini or Micro.
Online forex brokers in Kenya list :
|Forex broker Review||Visit|
Min. trading lot size
|Max. leverage||Min. deposit||Pip rebate||Rating||Promotions|
|XM.com ||0.01||1:888||$5||1||78|| |
|Octafx review||Octafx register||0.01||1:400||$50||1||70|
The Final Word
Many online brokers are not the same and the offer different classes of assets. However, most of them offer major currencies that are traded extensively across the world. Hence, there is no doubt that you can expect to get benefits trading in forex in Kenya. However, there are some challenges that need to be overcome and the authorities are aware of it and are taking steps.